Vijaya Bank Education Loan

Vijaya Bank became operational on 23 October 1931 and today, has about 1190 branches and 47 extension centres spread across all states of the country. The bank offers a wide variety of services including retail and corporate credit. The bank offers education loans at nil processing, pre-payment and documentation charges.

Interest Rates

The education loan is available on 1.25 per cent lesser than the BPLR rates.

Charges

Flexibility

• Eligibility: To avail the education loan of Vijaya Bank, the applicant should be an Indian citizen having a secured admission in the professional/ technical course through entrance test or merit-based selection procedure.

• Loan Amount: The maximum amount sanctioned under educational loan could go up to Rs 10 lakh for studies in India and Rs 20 lakh for studies abroad.

This amount would include hostel, boarding fees, including caution deposit and building fund, books, stationery and equipment required for the course like computers, examination, library and laboratory fees. In addition to this travel expenses for studies abroad will also be covered.

• Repayment options: The repayment period can range between 5-7 years for loan taken for studying in India, and 5-10 years for loan taken for studying abroad. The repayment period will start after the repayment holiday/ moratorium period, which is course period + 1 year, or 6 months after getting a job, whichever is earlier.

1. The extension of time for completion of course may be permitted for a maximum of 2 years.
2. For Pilot Training Programme, loan is to be repaid within 5 years after commencement of repayment period.

• Margin is the percentage of study cost that borrower has to pay. There is no margin applicable for loan amount up to Rs 4 lakh; whereas for loans worth above Rs 4 lakh, 5 per cent of the study cost has to be paid by borrower for studying in India, and 15 per cent for studying abroad.

• Processing Time: The bank may take longer than the industry practice of 10 to 12 days for processing of the loan.

• Security:

1. For amount up to Rs 4 lakh, no collateral security is required. Only co-obligation of the parent or guardian will work.
2. For loan amount between Rs 4 lakh and Rs 7.5 lakh, co-obligation of the parent or guardian and an additional third-party guarantee will be taken as security.
3. For loan amount above Rs 7.5 lakh, co-obligation of parents or guardians along with collateral security of suitable value will be taken as security.

• Special options:

1. 1 per cent concession in the interest rate will be allowed, if the interest is serviced during the study period.
2. Discount of 0.50% in rate of interest will be permitted to women students.

Example

Other Details

• Pre-Sales Information: Adequate information is present on the website, other than required documents. Other than this, you will have to visit the branch as there is no option for applying for loan online. For loan customers, contact numbers of head-office in Bangalore are provided. Alternatively, you can mail at the address given on the website and ask for information.
• Customer Support: There are service-related complaints on the internet, which reflect that there are operational and transactional issues with existing customers. The turn-around time to process loans is also very long.

Ratings